Tuesday, February 12, 2008

The U.S. dollar might be destined to disappear, replaced by a regional currency called the amero, reports the Tokyo correspondent for the Singapore Business Times today.

"Truth is said to be stranger than fiction sometimes, and what I hear about the future of the U.S. dollar may sound like pure fiction, but the sources from whence the reports spring are, as they say, 'usually reliable' ones, and so they do have a ring of truth to them," writes Anthony Rowley.

Rowley says the slide of the U.S. dollar in relation to other foreign currencies makes such a transition more likely.

"And, looking at the size of U.S. debt to all those foreign central banks and private investors who obligingly finance the American current account deficit, similar conclusions might be drawn," he writes.

Because the U.S. is not going to stand by and watch its currency depreciate forever, he says his sources in the monetary and financial establishment plan a new currency that would take trade and investment cooperation within the North American Free Trade Agreement, or NAFTA, into new areas of monetary cooperation – leading ultimately, perhaps, to a common currency for the U.S., Canada and Mexico.

In addition to the name "amero," Rowley says the name "americo" is also under consideration for this new currency. read full story here

1 comment:

THE AMERO is a subject that will become even more critical over the next five years as economic stagnation brings pressure to the North American geopolitical landscape.

Canada and the U.S. under ONE currency would relegate Canada to a sub-state status.... imagine adding Mexico to the mix? Not pretty if you are Canadian; Questionable if you are Ameircan, and oh, joy if you are Mexican. I have added some thoughts at http://pacificgatepost.blogspot.com/2008/02/amero.html for those who have a moment for additional perspective.